Updated 27 October 2026. Pakistan's steel industry is small, but its appetite for imported scrap has changed fast. In 2025 the country imported 3.6 million tonnes of ferrous scrap, up 38%, in a year when its own crude steel output fell. The turning point was a change in tax policy that made imported scrap cheaper than local material. This profile covers volumes, suppliers, price, the EU rules that put one of its supply lines at risk and the small but growing role of Australian cargoes. It is general information, not trading or customs advice.
The 2025 surge
BigMint reports that Pakistan's ferrous scrap imports reached 3.6 million tonnes in 2025, up 38% from 2.62 million tonnes in 2024, with December up 95% on a year earlier. Over the same period crude steel output fell 16% to 3.62 million tonnes [1]. Imports rising while output falls looks odd until you read the price story: BigMint says global shredded scrap was much cheaper in 2025 than in 2024 and that local scrap stayed expensive, so mills substituted imports for domestic material [1].
What changed on duty
The FY26 federal budget removed the 3% customs duty on melting scrap grades such as heavy melting steel and abolished the 2% additional customs duty on scrap imports. BigMint describes HMS, shredded and bundled scrap as now effectively carrying 0% customs duty, and notes that imports rose after the budget announcement [1]. We did not find a confirmed report on the 2026-27 budget's treatment of scrap, although a wider tariff rationalisation package for industrial inputs was proposed. Check current Pakistan Customs tariff schedules for the rate on the day.
Who supplies Pakistan
| Origin, 2025 | Million tonnes |
|---|---|
| United Arab Emirates | 1.05 |
| United Kingdom | 0.96 |
| United States | 0.42 (down from 0.50) |
| Netherlands | 0.14 |
| Germany | 0.10 |
| Sweden | 0.09 |
Source: BigMint [1]. These six total about 2.76 million tonnes of the 3.6 million imported, and BigMint does not itemise the rest.
The UAE is partly a trading hub, so some of its volume is re-exported scrap of other origins. Europe and the UK together are the backbone of supply. Argus reports that EU exports to Pakistan were 1.327 million tonnes in 2025, 38.7% of Pakistan's imports of this category [2]. That is the key policy risk. Eurometal, citing Eurostat's export-side data, gives a higher figure for the first half of 2026: 952,110 tonnes of EU steel scrap sent to Pakistan, up 18.5%, against 609,000 tonnes in the Argus series. The two sources measure different ends of the shipment, so use either as an indication, not an exact count.
The EU draft list
Under the European Commission's draft list of non-OECD countries that could receive EU scrap after 21 May 2027, Pakistan is not currently authorised, though it applied to be included. Argus notes that Pakistan combines EU and UK supply with US, UAE and other Asian material, and reports no specific reaction from Pakistani industry [2]. The draft is not adopted. See EU Scrap Exports: Volumes, Rules and Duties for the full picture.
Prices
BigMint reports that UK-origin shredded scrap averaged US$374 a tonne in 2025, US$40 lower than in 2024, and that in the first quarter of 2026 Pakistan paid roughly US$10 to 12 more than India and US$5 to 6 more than Bangladesh for shredded scrap. Imported shredded scrap was quoted around US$360 to 365 CFR against local scrap of PKR 135,000 to 140,000 a tonne, or about US$483 to 501 [1]. SteelOrbis reported two ex-UK shredded deals at around US$417 CFR Qasim in late September 2026, in a market it described as subdued, with freight shaping the outlook [3]. These are spot quotes and move week to week.
2026 so far
SteelOrbis, citing Pakistan Bureau of Statistics data, reports September 2026 scrap imports of 427,880 tonnes, up 18.3% on August and 16.7% on September 2025, with a value of US$248.7 million [4]. The monthly series is volatile and the category may differ slightly from the BigMint ferrous total, so do not add the two together.
Australia's place
Pakistan is small for Australian sellers but growing. In 2025-26 Australia sold Pakistan 87,683 tonnes of waste and scrap worth A$97.8 million, up from A$74.5 million in 2024-25 [5]. Ferrous scrap was 41,142 tonnes worth A$52.7 million, up 51% from 27,182 tonnes. Textile waste was another 36,387 tonnes (A$25.5 million) and non-ferrous metals excluding aluminium 6,938 tonnes (A$13.8 million) [5]. Against Australia's total ferrous exports of 2.55 million tonnes, Pakistan is about 1.6%.
What it means for Australian sellers
- Pakistan competes on price. Buyers compare Australian offers with UK and UAE cargoes that are closer to home. Pakistan pays more than India or Bangladesh at times, which can attract offers.
- The EU draft could redirect supply. If European scrap is steered away, Pakistani mills would look to other origins, which is a possible opening. It is a draft and the outcome is uncertain.
- Policy swings volumes. The 2025 surge followed a duty change. A reversal would work the other way. Check the rate before pricing.
- Document everything. See How a Scrap Export Deal Works, Step by Step.
See also India's Scrap Market: Imports, Duties, Rules, Bangladesh: Australia's Top Scrap Customer and World Scrap Trade: Top Importers and Exporters. You can compare offers on the marketplace.
What to watch
| Signpost | Why it matters |
|---|---|
| Customs duty in the 2026-27 budget | Drove the 2025 surge |
| EU final country list | Decides whether European supply continues |
| Ex-UK shredded price at Qasim | The reference for offers |
| Monthly Bureau of Statistics data | Shows demand momentum |
Frequently asked questions
How much scrap does Pakistan import?
3.6 million tonnes of ferrous scrap in 2025, up 38% [1].
Who supplies Pakistan?
Mainly the UAE and the UK, then the US, the Netherlands, Germany and Sweden [1].
What is the import duty?
The FY26 budget removed the 3% customs duty and the 2% additional duty on melting scrap. Check the current tariff schedule for 2026-27 [1].
Does Australia sell to Pakistan?
Yes, 41,142 tonnes of ferrous scrap in 2025-26 and other metals and textiles [5].
Is Pakistan affected by the EU rules?
It is not on the EU draft list, which is not yet adopted [2].
Sources
- BigMint, Pakistan ferrous scrap imports rise over 35% y-o-y in CY25 on duty relief, lower global prices (7 March 2026).
- Argus, EU scrap restrictions threaten established trade (29 September 2026), and EU proposes scrap export restrictions to key markets.
- SteelOrbis, Pakistan's import scrap market still subdued as freight shapes near-term outlook.
- SteelOrbis, Pakistan's scrap imports up 18.3 percent in September 2026 from August.
- Department of Climate Change, Energy, the Environment and Water, Waste exports data collation, September 2026 (ABS records), ScrapTrade calculations. See Australia's Scrap Metal Exports: 2025-26 Data.
Figures are as reported by the sources named. Duties change and should be checked against current customs notifications. This article is general information, not legal, customs or trading advice. ScrapTrade operates a scrap marketplace and has a commercial interest in the scrap trade.